The International Energy Agency on Tuesday said the oil market is undergoing a supply shock, as production in North America continues to grow at a record pace, with non-OPEC supply alone expected to meet most of the world's rising energy demand.
The Paris-based agency forecasts North American supply to grow by 3.9 million barrels per day from 2012 to 2018 — nearly two-thirds of total forecast non-OPEC supply growth of 6 million barrels per day.
“The supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15,” the IEA said in its Medium-Term Oil Market Report.
Crude oil for June delivery is trading up 13 cents at $ 94.33 an ounce on the New York Mercantile Exchange. Yesterday, it ended lower by 96 cents, or 1%, to settle at $94.21 a barrel — its fourth straight session loss and lowest close since May 2.
According to data from the American Petroleum Institute issued late Tuesday the crude-oil supplies rose over three times more than analysts expected for the week ended May 10. Crude supplies climbed 1.1 million barrels, while a Platts survey of analysts showed a forecast for a 300,000-barrel climb. Gasoline inventories fell 480,000 barrels and distillate stockpiles rose by 1.9 million barrels. The API data come ahead of the more closely watched U.S. Energy Information Administration report due Wednesday.
MCX May crude futures may open today's session near Rs 5195 levels with resistance near Rs 5225 levels and support around Rs 5165 levels.
Source by Commodity Insights
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